Guarantees of origin (HKN): trade is becoming increasingly important

Guarantees of origin (HKN) or green electricity certificates mean additional financial resources for operators or investors of non-subsidized renewable energy systems. Trading with guarantees of origin is therefore becoming increasingly important. They ensure that green electricity is only marketed once and that households or companies actually use CO₂-neutral energy.

The aspect of Green PPAs in particular is being discussed with regard to the changing German and European legislation towards "Fit for 55" and climate protection is becoming increasingly lucrative for companies. This development is also reflected in the current price increase for HKNs: while a green electricity certificate of origin cost around EUR 5 in 2021, the price in 2023 will already be EUR 6.30/MWh. Specifically, it currently mainly affects companies that are assigned to a CO₂ certificate trading system or that are assigned to the EU taxonomy and the CSRD obligation are subject to. But these obligations are also increasingly being smaller companies expanded. As part of the expansion of sustainability strategies, high energy prices and the harmonization of a European HCN system the importance of HKNs will increase significantly in the future.

HKN regulation in Germany

In Germany, energy suppliers are obliged to do this under Section 42 of the Energy Industry Act (EnWG), identify the origin of the electricity. He must submit corresponding guarantees of origin for the delivered quantity to the Guarantee of Origin Register (HKNR) of the Federal Environment Agency devalue. One guarantee of origin corresponds to one MWh of renewable energy. Any natural or legal person can register with the HKNR and open an HKN account for a fee. For this purpose, electricity consumers and energy supply companies (ESCOs) must state which electricity mix they use or supply. In addition, the Association of Issuing Bodies (AIB) monitors the national registers in regular audits to ensure that the quality standards of all guarantees of origin in Europe are met and that fair trade between countries is guaranteed.

Guarantees of origin are only validated by energy suppliers

Account management in the HKNR is the responsibility of the Plant operatorthe Retailer and the Electricity supply company (EVU) and no service provider, grid operator or environmental verifier. System operators are not obliged to participate in the CCNR, but should set up and actively maintain an account if they wish to benefit from trading.

They are free to decide if they do not claim full support for the electricity in accordance with Section 19 EEG 2017 with a market premium or feed-in tariff, but instead receive at least partial other direct marketing without a market premium or operate a non-EEG-eligible system. If they wish to participate, the HKNs are issued monthly and can then be sold.

This applies to electricity from renewable energies if it is fed into the fed into the public grid is transferred to a Final consumer supplied and so far No subsidy payment (market premium, feed-in tariff or tenant electricity surcharge). This means that guarantees of origin are not issued for own consumption before feed-in, but only for the electricity that actually reaches the public grid after the company premises. It is precisely this green electricity that may then only be used by the energy supply companies through HKNs within 18 months be devalued.

Electricity from renewable energy sources therefore only becomes green electricity in legal terms once guarantees of origin (HKN) have been invalidated (in accordance with Section 42 (5) EnWG, Section 30 (1) HkRNDV) or the EEG surcharge has been paid (in accordance with Section 3 No. 29 EEG). In addition, this creates an electricity labeling obligation for energy supply companies in accordance with Section 78 (1) sentence 3 EEG and Section 42 (1) EnWG. The same applies to regional certificates (RN) with the difference that they have a lifespan of 24 months.

Account management of guarantees of origin (HKN)

The basic prerequisite for trading is that the electricity suppliers and system operators have user accounts with the HKNR. These can also be managed as sub-accounts. The electricity suppliers or energy supply companies buy the HCNs from the installation operators and then apply to the Federal Environment Agency to have them invalidated so that they can resell them as green electricity. This is why the term "invalidation of guarantees of origin" is generally used.

The management of the respective accounts by the energy supply companies or the system operators ties up resources and can be time-consuming. For electricity suppliers, this task is part of their core business, whereas for companies that operate a solar or wind power plant, it is usually not. In such cases, it therefore makes sense to implement an HCN management system or to commission an external company to do so. The partners of CUBE CONCEPTS also offer professional solutions for this.